I remember having written earlier about a deep pocket segment between the age group 18-21 numbering around 40 million and having a spending capacity of around 200,000 crore. Add on to this, the fact that India is a country brimming with younger population rushing to become the most populated country in the world barely 2030 and also the fact that the urbanisation would be on full throttle you would perhaps be better placed to appreciate the emerging buyer behaviour and market trends. The fact that we live in the era of and all pervading influence of the idiot box the world of fashion and brands could not have craved for a better situation. You must have witnessed a dedicated channel showing the models cat walking on the ramps. You also must have by now realised the increasing efforts the fashion designers and models are making to showcase various brands. It was perhaps this which might have motivated the organizers to hold the maiden India Brand Show 2007 at Hotel Renaissance between Jan uary 22-24, 2007 with an eye on showcasing popular apparel and accessory brands in presence of Munnabhai who for a change was not doing Gandhigiri in a loin cloth but was promoting the trend setting brands for the fashion conscious.

This all is happening at a time when the market for branded apparel is growing at 20 per cent. The increasing demand for branded cloths coupled with higher spending power has pushed up the leading players to set shop and increase their market penetration. They seem to be in a race to spoil the upwardly mobile Indian customer for a choice. There are number of companies whose single brand has already turned a multi-crore turn over brand. Currently either Van Heusen or Louis Philippe has a turn over in the range of 160-180 crore in the high end market segment. There are brands like cottons by century with a current turn over of around Rs.50 crore aiming to touch Rs.100 crore by 2007-08 with an ambitious target to touch a turn over of Rs.500 crore in next three years. They are also planning to enter a range below the mid segment where the changing preferences and buyer behaviour indicates a huge potential. It is not that this revolution is touching only men's wear. Presently, women's wear is dominated by handloom and power loom segments slowly the branded fabrics are going to compete them fiercely. The brands like BIA have already hit the Indian market setting their eyes on new age working women especially the fast increasing segment of the women executives. Initially, launching formals as well as party wear and leisure wear BIA also intends to add their range casual and ethnic apparels. It is also interesting to note that in recent months the Indian textile industry has taken a fancy to Italian brands. A Bangalore based textile manufacturer announced picking up a 70 per cent stake in Bellora, a luxury brand from Italy in bed linen. Mumbai based Morarji Textiles similarly moved forward to grab Men's Club whereas Raymond announced a 50:50 venture with Grotto Spa to bring the apparel and accessories brand GAS into India. The Indian companies perhaps look at Italy as a global fashion capital on the other hand the Italian brands perhaps get attracted towards India's creativity in embroidery, design s and colours. One of the arguments advanced for Indian companies increasingly seeking Italian brands collaboration is that they are available at a competitive price compared to the US or elsewhere in the Europe. Major players like Madura Garments are quite bullish about a comparatively high growth in premium wear and luxury wear markets. It is therefore no surprise that the international brands like Gucci, Calvin Klein, La Perla, Jimmy Choo, FCUK, Gloria Vander Bilt, Mango, Nine West, Promod, Crocodile, Daks, Saville Row, Trussardi, Guess, Hugo Boss, Austin Reed, Ermenegildo Zegna, Benetton, Esprit, M&S, NEXT, Debenhams, Pal Zileri, Gas and S. Oliver are now not unknown to the Indian buyer. They either have already entered the Indian market or are planning to be there soon. With fast shrinking geographical boundaries, India seems to be catching up with the latest global fashion trends quickly. There are companies like Reliance who are already having the strategic plans on the drawing board to sell sports a pparel and footwear through their chain shops as co-branded products joining hands with brand leaders Reebok, Adidas and Nike.

India seems to be changing and changing fast as far as branded apparels and textiles are concerned. But this is not going to be without its own pains and problems. There are already whispers in the air about the mall rentals which are stated to have increased 40 per cent affecting the profitability of the brand and obviously their margins. In metro centres like Mumbai and Delhi the real estate prices have almost shot up four times further adding to this problem. As rentals constitute about 30 per cent of the gross margin and the sales do not rise dramatically, the profitability barrier definitely acts as a retarder. In a way, this may also be a blessing in disguise for smaller centres as to some extent the non affordability or eroding profitability motivates the branded cloth retailers to comparatively smaller centres. It is also complained that the frontline employee with right kind of background and attitude to manage the retail outlet are not easily available to suit the brand profile. The frontline staff shortage and movements is a major factor both in terms of costs involved and efficiency of the output. Any way the branded apparels and textiles markets are expanding. In all probability, the only thing they are likely to experience is an accelerated growth in demand. The issue is to penetrate the market and maintain the effective presence has its own cost commitments. Ultimately therefore this is going to be a game of fittest survival. But those who compete and survive shall also be greatly rewarded, Of course, in the long-run!